On Mad Money, Jim Cramer recently delved into the impact of previous President Joe Biden’s policies on the stock market, raising a question that has been on the minds of many executives: Did the market perform well because of the administration, or in spite of it?
According to Cramer, one clear example of success despite the prior president’s policies can be seen in the oil sector. He pointed out that oil performed well even though Biden, who was vocal about his opposition to fossil fuels, is not a supporter of traditional energy sources.
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Cramer remarked that he himself had pushed back on the notion that the oil industry was doing poorly under Biden when speaking with oil executives. He noted that while the stocks of these companies had done reasonably well, the underlying issue was that there had been no meaningful communication between the president and fossil fuel industry leaders.
Cramer explained that Biden, who was a staunch advocate for renewable energy, essentially ignored dialogue with the oil sector, leaving executives without a chance to discuss their concerns.
“The oil company CEOs that I know wanted to plead their case, play ball, but they never got a chance. Instead, they got a kick in the teeth though almost one year ago when the president crushed the most viable portion of the complex, the liquified natural gas market, by putting a pause on new export decisions pending environmental review.”
Cramer also pointed to another major sector that saw gains in spite of the president’s policies: the banking industry. He shared that during his conversations with various bank CEOs, many of them took the opportunity to criticize the Biden administration, especially in terms of its tone and approach. While the banks performed well under Biden, Cramer noted that much of this success was despite the administration’s handling of financial regulations.
He explained that the lack of communication between the government and the business world had created an environment where many companies were hesitant to pursue mergers and acquisitions, which would have been profitable for shareholders. Instead of fostering productive discussions, the administration’s approach seemed to be to litigate first, without ever attempting to engage in meaningful dialogue. Cramer added:
“It had a very successful chilling effect on doing new deals, many of which would’ve made shareholders like you a great deal of money… The bankers wanted some degree of transparency about the new regulations that intruded endlessly on what they were doing. They wanted some sense of the real capital levels that the government wanted to see and they wanted a seat at the table when the president discussed business. Didn’t happen.”
Jim Cramer Looked At These 7 Stocks Recently
Our Methodology
For this article, we compiled a list of 7 stocks that were discussed by Jim Cramer during the episodes of Mad Money aired on January 17. We listed the stocks in ascending order of their hedge fund sentiment as of the third quarter, which was taken from Insider Monkey’s database of 900 hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
Jim Cramer Looked At These 7 Stocks Recently
7. Easterly Government Properties, Inc. (NYSE:DEA)
Number of Hedge Fund Holders: 16
Cramer was asked about Easterly Government Properties, Inc. (NYSE:DEA) by a caller during the episode’s lightning round, and here’s what he said:
“You know, it’s very tough to tell what they really own and what they do. And I’ve gotta tell you that makes me very, very shy about it.”
Easterly Government Properties (NYSE:DEA) focuses on acquiring, developing, and managing premium commercial properties leased to the U.S. Government. For the third quarter of 2024, the company reported a net income of $5.1 million, or $0.05 per share on a fully diluted basis. The company’s Core Funds from Operations (FFO) for the quarter stood at $32.2 million, or $0.30 per share on a fully diluted basis. Looking ahead, the company provided its full-year 2024 guidance, estimating Core FFO per share in the range of $1.15 to $1.17 and net income per share on a fully diluted basis to be between $0.22 and $0.24.
For 2025, Easterly Government Properties (NYSE:DEA) projected Core FFO per share on a fully diluted basis to fall between $1.17 and $1.21, with net income per share expected to range from $0.24 to $0.28.
6. Sempra (NYSE:SRE)
Number of Hedge Fund Holders: 33
Cramer emphasized that Sempra (NYSE:SRE) stock should be bought and praised the company’s CEO.
“I think Sempra is such a buy, I don’t even care that it only yields 3%. I think that, you know, like this is Jeff Martin, he’s bankable, bankable, bankable. I want you to own the stock.”
Sempra (NYSE:SRE) is an energy infrastructure firm that offers electric and natural gas services, oversees electricity transmission and distribution, and works on developing energy infrastructure. After the election results came out in November 2028, Cramer commented:
“I also like Sempra, which is a more diversified power company but has plenty of nat-gas exposure through regulated gas utilities in California, big nat-gas pipeline network that helps bring gas to Mexico. Can you believe that they need our natural gas after being so big in it? But they haven’t done any of the infrastructure. It’s also got a growing portfolio of LNG export facilities in both the US and Mexico. This is another name that’s broken out since the election, straight up actually, also up 15%. Now I would be a little more cautious. I’d buy some and then wait for it to come down.”
It should be noted that Sempra’s (NYSE:SRE) stock has gone down over 8% since the election in 2024.
5. Louisiana-Pacific Corporation (NYSE:LPX)
Number of Hedge Fund Holders: 39
Cramer said to stay with Louisiana-Pacific Corporation’s (NYSE:LPX) stock as there is going to be increased building activity.
“Well, I gotta tell you, you’re gonna have a huge rebuild in the Southland, California, the numbers for housing are okay, not great. It’s been a horse, it’s been a great stock. I say you have to stick with it.”
Louisiana-Pacific (NYSE:LPX) provides building solutions for new home construction, remodeling, and outdoor structures, focusing on engineered wood products and structural panels for various markets.
SouthernSun Asset Management, LLC stated the following regarding Louisiana-Pacific Corporation (NYSE:LPX) in its Q3 2024 investor letter:
“Louisiana-Pacific Corporation (NYSE:LPX) was the top contributor in the Small Cap strategy in the third quarter. LPX is a market leader in the manufacturing of engineered wood siding and oriented strand board (OSB). The company’s siding products have been on a secular growth trend, taking share from other forms of siding in recent years due to a superior value proposition tied to factors such as aesthetics, ease of use, and quality. During the second quarter, LPX siding sales performed strongly and management increased 2024 segment guidance. Market data suggests the company is gaining share from vinyl and other siding products in the new builder, repair and remodel, and retail channels, and has a long-term opportunity to continue this trend. The company’s OSB assets and leading market position remain an important component of the company’s long-term value. The largest use for OSB is sheathing for residential new construction, and thus demand for OSB is correlated with housing starts. OSB prices are largely dependent on supply and demand dynamics within the industry. During the second quarter, prices were relatively strong, which combined with strong operating performance by the company, led to strong profits. Management expects lower prices and thus lower OSB profits in the third quarter. Overall, we believe recent performance underscores the quality of the company’s assets and management’s skill, and we continue to expect satisfactory long-term results as shareholders.”
4. IDEXX Laboratories, Inc. (NASDAQ:IDXX)
Number of Hedge Fund Holders: 42
Discussing IDEXX Laboratories, Inc. (NASDAQ:IDXX), Cramer said, “Too inconsistent. I’ve gotta tell you, if Chewy were to come down, that is the one I’d like you to be in, Chewy.”
IDEXX Laboratories (NASDAQ:IDXX) creates and provides diagnostic products and services for veterinary care, livestock, poultry, dairy, and water testing industries. In December 2024, Cramer did a deep dive into the company and said:
“When we started this show, they used to be one of our favorites. They do software water microbiology testing… But after an incredible run from below $200 in March of 2020 to an all-time high of about $700 in August 2021, the stock’s been lost to the wilderness for a couple of years. That action mirrors what we’ve seen in many other pet stocks because, after a huge boom in pet adoption during the pandemic, there were a couple [of] lean years that followed, including lower vet visits trends, something that impacts IDEXX.”
Cramer then discussed IDEXX Laboratories’ (NASDAQ:IDXX) last quarterly results, describing them as somewhat mixed. While the company missed revenue expectations, it beat earnings by 12 cents. However, Cramer noted that IDEXX lowered its full-year revenue forecast and simply reaffirmed its earnings outlook, which contributed to a less-than-optimistic outlook and led to the stock taking a hit. In the weeks following the report, the company also announced the departure of its CFO, though Cramer noted that the news did not have as significant an impact on the stock as he initially expected. He added:
“I think the company should benefit from a continued comeback for vet visits, which has been happening but at a slower pace than they expected. As we get further and further removed from the pandemic, I expect everything pet-related to keep trending back towards normal levels. And in the context of IDEXX, normal means strong secular growth thanks to increased vet visits and tremendous pricing power. Clearly, a leader in veterinary testing. At its high in 2021, IDEXX sold for 76 times the next year’s earnings estimate. Now it’s trading just 36 times next year’s earnings estimates… I think that’s a compelling entry point. Not ironclad, but pretty good.”
3. Sealed Air Corporation (NYSE:SEE)
Number of Hedge Fund Holders: 44
Cramer likes Sealed Air Corporation (NYSE:SEE) and recommended buying the stock, noting that the price has declined.
“You know, I’ve always liked that company. I do think that… No, I like it. I’m just gonna tell you that I think it’s a good stock to own here, especially because it’s way down from where it used to be.”
Sealed Air (NYSE:SEE) provides packaging solutions aimed at improving food safety, reducing waste, and automating processes for food industries, while also offering protective packaging for e-commerce, consumer goods, pharmaceuticals, and industrial markets. Year-to-date, the stock is up more than 6%.
Heartland Advisors stated the following regarding Sealed Air Corporation (NYSE:SEE) in its Q4 2024 investor letter:
“Investors seem to be chasing momentum in Industrials, as evidenced by passive flows into sector ETFs, while showing little interest in packaging stocks, a subsector of materials. Throughout the year, we have been paying particularly close attention to possible opportunities within packaging in anticipation of renewed interest.
One leading producer, Sealed Air Corporation (NYSE:SEE), a global packager, caught our attention. After thorough research, we determined SEE was mispriced by Wall Street, selling substantially below its intrinsic worth and less than half the market’s price/earnings ratio.”
2. Cameco Corporation (NYSE:CCJ)
Number of Hedge Fund Holders: 60
When a caller asked Cramer about Cameco Corporation (NYSE:CCJ), he said:
“Well, if you’re gonna own CCJ, if you’re gonna own a uranium stock that is the one to own. I don’t want to… I don’t think it’s a growth business.”
Cameco (NYSE:CCJ) provides uranium for power generation and delivers nuclear fuel processing, reactor technology, and other related services to commercial utilities and government entities around the globe. Cramer has not strayed much from his opinion about the company as he said the following in November 2024:
“Look, all the uranium players are up. I think that they’re going to amount to very little in the end. This is not an expensive stock. I understand why you want to be in it, not versus the others, but it is an incredibly expensive stock versus the rest of the market. That’s what I care about. I am a kaching kaching when it comes to Cameco.”
Since he made the comment, Cameco’s (NYSE:CCJ) stock has declined more than 8%.
1. Adobe Inc. (NASDAQ:ADBE)
Number of Hedge Fund Holders: 123
During the episode, Cramer said to buy Adobe Inc. (NASDAQ:ADBE) as the stock has come down significantly.
“Adobe, okay. Now, I think Adobe has come so far down that it’s just, I think I’m gonna call it a buy. I may look back, I may be criticized, people may think, what the hell is he talking about? But Adobe… I want to own some Adobe.”
Adobe Inc. (NASDAQ:ADBE) is a leading software company recognized for its diverse offerings, especially in the areas of digital media creation and document management. In December 2024, Cramer commented:
“As I mentioned earlier, the enterprise software stocks have been roaring, reacting very positively to pretty much everything these days. So maybe we should start thinking about buying the stock of Adobe, which has some of the very best software to help businesses with marketing and web design. I like this company very much, but it’s been stuck in enterprise software purgatory. Not anymore. Maybe it has a real run by just delivering good numbers.”
While we acknowledge the potential of Adobe Inc. (NASDAQ:ADBE) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than ADBE but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article was originally published at Insider Monkey.
